National Iranian Oil Co. is set to reduce the official selling price of its main Iranian Light crude oil to be supplied next month to Asia after Saudi Arabia cut prices on Monday.

Iran’s state-owned oil company will set Iranian Light for November at 46 cents a barrel above the average of Persian Gulf benchmark Oman and Dubai grades, based on a quarterly formula tied to prices set by Saudi Arabian Oil Co. that National Iranian Oil Company has followed in the past. The premium will be down 45 cents, or 49 percent, from October.
Saudi Aramco, as state-owned Saudi Arabian Oil is known, on Monday reduced the price for Arabian Light crude for November shipments to Asia by 45 cents a barrel on reduced refinery demand for gasoline and diesel.
Iranian Heavy and Forozan Blend crude, linked to Saudi Aramco’s Arabian Medium grade, will each be reduced by 15 cents a barrel to discounts of 31 cents and 26 cents to the Oman-Dubai average, according to the formula. Saudi Aramco on Monday cut Arabian Medium by 15 cents a barrel.
National Iranian Oil Company will formally announce its prices for the three grades to be supplied to Asia, the Mediterranean, Northwest Europe and South Africa later this week. It will also set November prices for Soroush and Norooz, which are shipped only to Asia and the Mediterranean.
Iran, the second-largest producer in the Organization of Petroleum Exporting Countries, pumped 3.78 million barrels a day last month, more than its quota of 3.34 million, according to a Bloomberg survey of analysts and producers. The country has the capacity to produce 4.1 million barrels a day.
(Source: Bloomberg)